Chile to Implement Carbon Tax Complimenting the Latin American Trend of Environmental Reform
On September 26th, Chilean President Michelle Bachelet signed into law a new environmental tax on carbon emissions, making Chile the first South American country to enact such legislation. The tax is targeting the country’s power sector, which is dominated by nearly 80 percent by fossil fuels.1 It is aimed at thermal plants with installed capacities of 50 megawatts or more. Plants of this size will be charged USD $5 per ton of CO2 released, exempting smaller plants and those fueled by biomass.1